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Measure No. 29

House Joint Resolution 18--Referred to the Electorate of Oregon by the Legislative Assembly of the 2003 Legislature to be voted on at the Special Election, September 16, 2003.

BALLOT TITLE

AMENDS CONSTITUTION: AUTHORIZES STATE OF OREGON TO INCUR GENERAL OBLIGATION DEBT FOR SAVINGS ON PENSION LIABILITIES.

RESULT OF "YES" VOTE: "Yes" vote authorizes state to incur general obligation debt for savings on pension liabilities.

RESULT OF "NO" VOTE: "No" vote does not authorize state to incur general obligation debt for savings on pension liabilities.

SUMMARY: This measure amends the Oregon Constitution to authorize the State of Oregon to incur debt to finance pension liabilities of the state at a lower cost to the state and to pay costs of issuing and incurring indebtedness. The measure authorizes the Legislative Assembly to enact implementing legislation.

The measure specifies that indebtedness authorized by the measure is a general obligation of the state, backed by the full faith and credit and taxing power of the state, except ad valorem taxing power. The measure limits the amount of indebtedness outstanding at any time to one percent of the real market value of property in the state.

ESTIMATE OF FINANCIAL IMPACT: This measure has no direct financial effect to state or local government expenditures or revenues. However, general obligation indebtedness provides the lowest cost alternative among financing mechanisms. To the extent that the State of Oregon uses the authority to issue general obligation indebtedness rather than using more costly financing mechanisms, the State of Oregon should experience lower financing costs.

Text of Measure

Be It Resolved by the Legislative Assembly of the State of Oregon:

PARAGRAPH 1. The Constitution of the State of Oregon is amended by creating a new Article to be known as Article XI-O, such Article to read:

ARTICLE XI-O

SECTION 1. (1) In the manner provided by law and notwithstanding the limitations contained in section 7, Article XI of this Constitution, the credit of the State of Oregon may be loaned and indebtedness incurred to finance the State of Oregon's pension liabilities. Indebtedness authorized by this section also may be used to pay costs of issuing or incurring indebtedness under this section.

(2) Indebtedness incurred under this section is a general obligation of the State of Oregon and must contain a direct promise on behalf of the State of Oregon to pay the principal, premium, if any, and interest on that indebtedness. The State of Oregon shall pledge its full faith and credit and taxing power to pay that indebtedness; however, the ad valorem taxing power of the State of Oregon may not be pledged to pay that indebtedness. The amount of indebtedness authorized by this section and outstanding at any time may not exceed one percent of the real market value of all property in the state.

SECTION 2. Indebtedness incurred under section 1 of this Article may be refunded with like obligations.

SECTION 3. The Legislative Assembly may enact legis-lation to carry out the provisions of this Article.

SECTION 4. This Article supersedes all conflicting provisions of this Constitution.

PARAGRAPH 2. The amendment proposed by this resolution shall be submitted to the people for their approval or rejection at a special election held throughout this state as provided in section 2, chapter 592, Oregon Laws 2003 (Enrolled House Bill 2651).

NOTE: Boldfaced type indicates new language; [brackets and italic] type indicates deletions or comments.


Explanatory Statement

Legislative Argument in Support

Arguments in Favor

Arguments in Opposition

Table of Contents

Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722
Phone: (503) 986-1523 • Fax: (503) 986-1616 • oregon.sos@state.or.us

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